DEFENCE NOTES

Pakistan Ordnance Factories  Pioneers in Defence

An overview of Pakistan’s primary defence manufacturing group.

General

Group of Industries placed under Pakistan Ordnance Factories Board is in-fact the oldest, largest and most sprawling complex of defence production units in Pakistan. This set-up is, therefore, rightly regarded as mother industry for the entire defence production spectrum. While contributions of these factories have been abounding for state security since early fifties, their performance in the last one year was outstanding. POF not only excelled in attaining higher standards of quality  but also in exports, computerization and technical training of the work-force. Some of these aspects are briefly covered in the ensuing paras.

Corporate Culture

POF has largest reservoir of technical work-force and professional engineers in the country covering mechanical, chemical, metallurgical, electrical, and computer fields. These engineers are highly motivated and extremely dedicated. They have been knit in a cohesive team to meet all the challenges faced in meeting the production targets given by the Armed Forces. Punctuality is the hall mark of POF work-force. This is evident when you see almost 30,000 employees standing at their respective posts of duties in workers uniform at 0700 A.M. everyday. (Picture-1). Besides, easy accessibility to POF Top Management specially the Chairman , everyday at 0730 A.M. in “RABITA HALL”, and on every Friday  in “JAMIA MASJID” and personal attention of the POF administration to tackle day to day problems faced by the POF work-force, has converted POF employees into a highly disciplined and contended body of Mujahids with extreme love for their country and strong faith in God’s will and destiny. POF, therefore, has today an excellent corporate culture. Managers are not only trained as administrators but also groomed as leaders expected to set personal examples which  serve as beacon lights for their subordinates. 

Production Turn-over

Production turn-over in last one year touched the highest figure of Rs.8.22 billion unparalleled in the history of POF  registering an increase of 34 % from the previous year. This was mainly possible due to guidance by the Chief Executive, visionary approach of the POF top management and whole-hearted involvement of the entire work-force with a missionary zeal. Last five years turn-over profile is as under:-

Above outstanding performance would not have been possible without the kind encouragement by our Chief Executive Gen Pervez Musharraf which is evident from the following contents of his letter written at the beginning of the last financial year.                            

“The achievements of POF Wah, which are commendable, reflect dedication, commitment  and team work.  Please convey my appreciation to all concerned”.

ISO-9001 Certification

Despite excellent performance by POF in the last fifty years, it did not have any international certificate for its quality products. POF top management signed a contract with M/s AOQC Moody International requesting them to send their team of experts to assess POF production potential, quality state, documentation and house-keeping standards. We are proud to say that after ten months of hectic scrutiny, M/s Moody international readily awarded ISO-9001 certificates to all fourteen major industries of POF. Essential details from the report written by Mr. David Embry,  Director M/s AOQC Moody International, are reproduced below: - (Picture-2)

“I am delighted to say that POF is one of the finest defence industries of the world. It is amazing that POF an organization of 33,000 employees, is being managed effectively and has an excellent technical know-how over a period of 50 years resulting in production of a variety of Arms and Ammunition. During my visit to POF, I came across the latest technology related to defence production. The awareness of POF management to important advancements taking place in latest technology is commendable”.

ISO-9002 Certification 

Wah Nobel Group of Companies which are POF subsidiaries with 49% investment by M/s Bofors of Sweden, were also awarded ISO-9002 certificates by   M/s Tuv Germany. (Picture-3).  Dr. Vianden’s comments were:-

“It can be said that Wah Nobel Group is one of the best, efficient and forward looking enterprises in this part of Asia.  The procedure related to various functions of management with respect to ISO-9002 reflect a harmonious performance in the Group and comprehension of the system by the management of the Group”.

Besides, POF subsidiaries were declared amongst the few best top companies for their excellent commercial activities in last one year. Their all economic indicators remained positive despite international sanctions and pressures.

Exports 

Achievement of ISO-9001 certification for quality products of international standards, POF’s participation in Defence Exhibitions in London, Kuala Lumpur, (Picture-4 & 5) South Africa.  Chairman’s interviews in the international periodicals like Military Technology, Khaleej Times, Al-Defyia etc, constant endeavours by our Defence Attaches in various countries and visits by 41 important international delegations during last year attracted enhanced attention of international traders to buy POF produced arms and ammunitions. Resultantly, POF exports jumped  from 21 million US$ to over 30 million US$ in the last year. Profile of last five years is indicated below:-

Indigenization

In view of tight foreign exchange situation and unjustified sanctions by the Western Powers on export of raw materials to Pakistan, POF management under-took indigenization with an unflinching resolve. Resultantly, POF saved approx Rs. 477.00 Million Rupees worth of foreign exchange.

Interaction with vending industry

Instead of expanding POF, the management decided to achieve optimum utilization of existing plants and register reputed domestic engineering industries as vendors in order to utilize their assets for manufacture of various parts of arms and ammunitions. In this context, Chairman POF Board inter-acted with Chamber of Commerce Gujranwala, Lahore and Federation of Pakistan Chamber of Commerce and Industries Karachi (Picture-7) and decentralized some of the production work to various engineering industries in Pakistan. This enhanced interaction between private and public sector has created better environment for indigenization and utilization of POF surplus capacity of plant and machinery for civil production.

Contribution to discourage illicit trade of arms and ammo

1.         Ist government directive to stop illicit trade of arms and ammo was issued in early seventies. Thereafter, numerous studies were carried out,  however, till to-date no solid viable strategy could be evolved in this context. Present government has shown its resolve to get the society cleansed of arms smuggling menace. The government, therefore, took firm decisions to:-

a. Give stern warning to the holders of unlicenced arms to deposit their illegal weapons forthwith.

b. Stop issuance of licences for prohibited bores.

c. Permit POF management to take appropriate steps to encourage Dara arm manufacturers to join country’s main stream arms production industry.

2.         The Chairman POF Board visited DARA along with a team of armament experts on 5th  Oct, 2000. (Picture 9&10).  As a result of this inter-action, DARA Arm manufacturers gave their undertaking not to manufacture automatic weapons provided their financial difficulties were alleviated. Chairman POF Board promised to consider following aspects:-

a. Enrolment of some experienced DARA Adam Khel arms manufacturers in POF after desired scrutiny and in line with prevalent government rules.

b. Opening of POF Branch for mainly shotgun manufacturing  at Peshawar in which DARA Arms manufacturers will have priority for employment. This will be part of POF commercial pursuits under Wah Industries Limited  (WIL) as per the officially laid-down charter of duties of this company and approved by the WIL Board of Directors.

c. Requesting Ministry of Interior to lift ban on licences for sport rifles (shotguns).

d. Requesting government to give special quota for DARA in Overseas employment.

e. POF management to facilitate DARA Adam Khel Arms manufacturers linkages with private / public sector Engineering Industries in Pakistan for registering DARA manufacturers as vendors for the manufacture of medical instruments, sewing machines, cycles  and various other spares of tractors and vehicles.

f. Training of Craftsmen from Dara Adam Khel at POF Institute of Technology.

Computerization 

Although some of the machines  / plants in POF are state of the art and fully computerized yet major portions of these machines are old vintage and labour intensive. To improve functional efficiency of POF, enhance production, curtail over-heads and reduce rejections, POF has decided to undertake computerization. (Picture-11) IBA teams headed by Dr Syed Irfan Hyder are constantly monitoring and studying our systems for the last six months to prepare a final blue print along with its cost effect which should suggest a balanced strategy to achieve an optimum blend of available cheap labour and modern computers which can be utilized for accounting, administration / establishment matters, hospital requirements and  inventory / documentation etc to achieve ideal results in minimum possible time. Inputs on network solutions ,would be available with us from the five most competent specialists in the country in this field by the 20th Oct 2000. This will be followed by similar inputs from specialists in other specialities that comprise this project, namely software development/implementation, hardware and integration. The current contract with M/s IBA will also give a better insight to POF into the costs, and into the required project resources.

Technical Training 

POF existing technical training institute has recently been upgraded to the level of a Poly Technical College and renamed as Pakistan Ordnance Factories Institute of Technology (POFIT). This institution is now covering five major disciplines including mechanical, chemical, metallurgical, electrical and computer fields. This institution has been opened to all national and international students for admission as per laid down merit and criteria. First year sessions are already in progress. To internationalize this facility, we have also offered technical training courses to various countries in South Asia, South East Asia and Africa. A group of students from Myanmar is expected to arrive shortly for a basic training of about 4-6 weeks.

Academic Facilities

Wah is known as a city of colleges and schools where over 70,000 students are studying in about 98 educational institutions (both government and private) and the literacy rate here  is over 95%. POF management has recently upgraded WSSO Mashal Girls Degree College  to a Post Graduate standard, started classes for FSc and allowed B.Ed classes to be run which has already been approved.

Welfare Measures

POF is perhaps the only set-up which takes maximum care of its employees. The existing 9.4 K.M. two way road was a death trap for the school going children, old ladies visiting POF Hospital and the cycled influx of work-force plying on the road. Resultantly, the average casualties registered in POF Hospital every year were over 1,000 injured and about 50 deaths. The road in question has been dualized (Picture-12) in the last one year providing separate services / cycle track for cyclists, footpaths for pedestrians, traffic signals to control the speed and green belt on both sides of the road with suitable plants for the uplift of the road which is used by numerous national and international delegations almost every`day. This has drastically reduced the casualties and we had only five death cases during last year. Besides, problems of low paid workers living in Gulistan and Lala Rukh colonies, outstanding for the last fifteen years, have been resolved in the last one year by getting their interests written off and providing them possession of the land allotted to them.

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